SOURCE: Urban Communications Inc.

Urban Communications Inc.

September 01, 2015 03:02 ET

Urban Communications Inc. Begins to Establish Predictable Growth Profile

VANCOUVER, BC--(Marketwired - September 01, 2015) - Urban Communications Inc. (TSX VENTURE: UBN) ("the Company"),Vancouver-based telecommunication company and one of the first in the country to deliver Gigabit Internet service to the home, is pleased to announce that its consolidated interim financial statements, related Management's Discussion & Analysis ("MD&A") and National Instrument ("NI") 52-109FV1 officer certification reports for the second quarter ended June 30, 2015, were filed with SEDAR on August 31, 2015, and can be viewed at www.sedar.com.

HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2015:

  • 65% increase in number of units passed and touched since March 31, 2015
  • Five-fold increase in the number of 1 Gigabit residential customers from March 31, 2015
  • Steady and predictable response rate from lead to contact to closed sale

DETAILS

After strengthening its balance sheet in the first quarter of 2015, Urban focused on increasing the number of residential buildings connected to its network and on customer acquisition during the second quarter.

Through a strong marketing program that monitors all phases of sales activity from initial outreach through tightly controlled contact activities, Urban has developed a standard lead development, sales process and customer acquisition model that has proven to be not only predictable, but in accordance with sales projections. This supports the thrust of current and future financing activities that are focused on raising sufficient capital to fund an accelerated program of building connections, which will in turn accelerate customer acquisition leading to profitability within a predictable time frame.

The Company incurred a net loss of $1,033,776 in the quarter ended June 30, 2015, compared to a loss of $397,879 for the corresponding quarter in the prior year. This increase in net loss was primarily due to increased operating costs for salaries, professional fees and travel expenses associated with the provision of the Company's industry leading 1-Gigabit (1 Gbps) services to both residential and commercial customers and expenses associated with raising capital.

Urban's CEO, John Farlinger stated, "After significant capital raising activity to strengthen our balance sheet and in proving concept, we have turned our attention to increasing our subscriber base as quickly as possible, and are very pleased with the results we have achieved to date. This has proven our model and shown overwhelming demand for our services. Although the results of this recent activity are not borne out in the revenues and profits of current financial statements, the investment and its return will be seen in future periods as we generate increasing revenues from this effort."

ABOUT URBAN COMMUNICATIONS INC.

Urban Communications Inc. (TSX VENTURE: UBN) is a telecommunications company providing a full suite grade fibre optic network to commercial, residential and public sector customers. The Company's fibre optic network covers 200 km. across metro Vancouver and Victoria and has a potential serviceable market of 850,000 residential units and 80,000 commercial enterprises. Urban has recently launched high-speed internet service to residential and commercial subscribers on its network at 1,000 Mbps (1 Gbps).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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